Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Investor Presentation (August 2023)
20 slides from Tata Steel's investor presentation, August 2023
Slide 1: Tata Steel Corporate Presentation
Preferred option Annual Tata Steel General Results Presentation Meeting 2023 Fourth quarter and Financial year Ended March 31, 2023 Presentation Fourth quarterto and shareholders Financial year Ended March 31, 2023 Corporate Presentation Steel - Born of Fire, the equation is visually represented in
Slide 2: Safe harbour statement
Safe harbour statement Statements in this presentation describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Imp
Slide 3: Overview
Overview India1 ▪ Integrated steel producer having ~35 MTPA steelmaking ▪ Steelmaking capacity: ~21 MTPA of which Flats is capacity with operations in India, Europe and Southeast Asia around 16 MTPA and Longs is ~5 MTPA 65% ▪ Product portfolio includes Flats (HR, CR, Galvanised, ▪ Key Consolidated f
Slide 4: Focused on creating sustainable value
Focused on creating sustainable value Leadership Consolidate Become future in India position as ready global cost leader Leadership position in Leadership in technology Robust financial Sustainability & digital health 4
Slide 5: Pursuing sustainability through multiple pathways
Net Zero by 2045 Pursuing sustainability through multiple pathways Multilocation New EAF Lower smelting Alumina in technology Iron ore Progress on Higher Hydrogen Renewable usage energy use Cleaner fuel i.e., Natural Upscaling gas etc. CCU pilots Initiatives Reducing Partnering with ash in Co
Slide 6: Demonstrating transparency through enhanced sustainability disclosures
Demonstrating transparency through enhanced sustainability disclosures Actively involved in development of global & national standards Adopted and reporting 1st Sustainability report published 2001 based on GRI framework Contribution to UN SDGs 1st CDP Climate reporting, expanded 2006 Sustainability
Slide 7: Progressing on decarbonisation journey in Netherlands and UK
Progressing on decarbonisation journey in Netherlands and UK Programs underway to remain cost competitive UK operations Netherlands operations ▪ High quality differentiated strip products for Auto, ▪ Caters to Automotive, Construction, Consumer Construction, Packaging and General engineering durable
Slide 8: Some milestones we are proud of
Some milestones we are proud of 36 million tons of 500+ kt slag used for 1st in India with Responsible 1st in India to receive license Iron ore mined road construction Steel certification for weather resistant steel Dream Click Build Global Diversity, Equity 100+ transgender Rs 1,730 crores sales, I
Slide 9: Our strategy is pivoted around capitalizing on India growth story
Our strategy is pivoted around capitalizing on India growth story Investments set to drive sector leading returns 2x capacity growth 50% 65% >75% in India by 2030 India Europe Dominant manufacturing base 2017 2023 2030 Flats Flats ~16 MTPA 2023 ~27 MTPA 2030 40 NINL / EAF Longs Longs ~5 MTPA ~13 MTP
Slide 10: 5 MTPA expansion progressing at Kalinganagar
5 MTPA expansion progressing at Kalinganagar Value added product mix to enable future ready portfolio The largest ‘Blast furnace’ in India 5,870 cubic metres Future ready portfolio High Tensile steel to meet Advanced steel to serve lightweighting & safety Infra and Energy needs segments ▪ Top combus
Slide 11: 5 MTPA expansion progressing at Kalinganagar: CRM complex and pellet plant
5 MTPA expansion progressing at Kalinganagar 2.2 MTPA CRM complex to drive product mix and Pellet plant to drive savings ▪ Volumes to consolidate leadership position in chosen segments & drive benefits of scale ▪ 2.2 MTPA CRM complex to further the product portfolio, CAL & CGL lines work underway ▪
Slide 12: Auto: Consolidate the position of Preferred Steel Supplier
Auto: Consolidate the position of “Preferred Steel Supplier” Increasing share of high-end products ▪ Leading market share and undertake wide ranging initiatives o Steady increase in volumes o Investment in new facilities to over time future ready product mix 4.2 Shift towards hi 3.8 tensile steel 3.
Slide 13: Retail: Capacity investments to drive high margin business
Retail: Capacity investments to drive high margin business Well placed to leverage pan India growth ▪ Poised to double presence in retail segment driven by o Capacity growth - NINL ramped o Serving Individual Homebuilders up well & EAF work underway via Superbrand ‘Tata Tiscon’ 500K+ 186kt Consumers
Slide 14: Downstream: Value added growth for product mix enrichment
Downstream: Value added growth for product mix enrichment Tubes, Wires, Tinplate and Ductile Iron Pipe Tubes Wires Tinplate Ductile Iron Pipes Wide product Our LRPC strands Application in Tata Ductura, portfolio incl. HAR & are widely used in growing packaging designed to last transportation of Appl
Slide 15: Focused on staying cost competitive through business cycles
Focused on staying cost competitive through business cycles Cost improvement initiatives to optimise cash flows 5-year cost savings at Tata Steel India1 In Rs crores 6,545 6,309 5,369 5,463 Scaling up Iron ore mining capacity 6 MTPA pellet plant commissioned at in India Tata Steel Kalinganagar 3,556
Slide 16: Value accretive consolidation with multiple benefits
Value accretive consolidation with multiple benefits Unlisted Listed Tata Steel S&T Mining Indian Steel & TSLP TCIL Tata Metalliks TRF Ltd. Mining (TSML) Wire Products Swap ratio 6.7 Swap ratio 3.3 Swap ratio 7.9 Swap ratio 1.7 Filing of scheme Filing of 1st Shareholders Final order of with Stock mo
Slide 17: Digital ecosystem to empower business
Digital ecosystem to empower business Enable cultural readiness Three assets recognized as 4IR Lighthouse Digital ready Digital leader in Digitally enabled culture Global steel savings Connected operations Connected assets >$1 bn business value potential created in last 5 years 200+ machine learning
Slide 18: Tata Steel Consolidated Financial Highlights
Tata Steel Consolidated Financial Highlights Production (mn tons) Revenues (Rs Crores) EBITDA (Rs Crores) 31.03 63,830 30.65 2,43,959 2,43,353 1,56,477 30,892 32,698 28.54 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 PAT (Rs Crores) Diluted Earnings per share (Rs.) Dividend per share (Rs.) 41,749 33
Slide 19: Key financial metrices
Key financial metrices EBITDA Margin (%)1 EBITDA / ton (Rs.)1 Interest Coverage Ratio (x)1,2 Gross & Net Debt (Rs. crore) 26.2% 21,626 11.7 1,16,328 1,00,816 19.8% 88,501 90,440 18.9% 84,893 1,04,779 75,561 94,879 11,358 11,110 5.2 8,503 75,389 12.2% 13.4% 10,838 3.9 4.1 67,810 71,397 6,267 3.4 10.3
Slide 20: Our efforts are recognized globally and nationally
Our efforts are recognized globally and nationally TSL and TSE Jamshedpur is recognized as the first site in ‘Sustainability India to receive Champions’ by the Responsible Named top performer in Iron and Worldsteel (6th SteelTM Steel sector in Dun & Bradstreet's time in a row) certification India's